CFA vs CFQ – In a fast-paced financial industry there has been an increasing demand for qualified and credentialed professionals with the right kind of capabilities for any specialized job in a competitive global arena. To meet this requirement, a number of financial certification programs and designations have been offered by prestigious institutions across the world. In the course of this article, we would discuss CFA one of the most repute financial credentials, and CFQ, the highest level designation awarded in the specialized field of corporate finance. The information provided should be of use in making an informed choice of credential based on individual needs, eligibilities and preferences.

The article will give you provide you with detailed comparison between CFA and CFQ –

There are no exams to sit for the highest level at which candidates apply for CF Designation either after completing Diploma in Corporate Finance (through study route) or directly (through experience route) by fulfilling pre-requisite work and experience requirements.

Diploma in Corporate Finance consists of two exams:

Paper 1: Open book examination (short scenario style questions) Paper 2: Open book examination based on a case study

Mode/duration of examination

Across CFA Part I, II, III levels, there are morning and afternoon sessions of 3 hours each.

Cost of applying for Corporate Finance Qualification through experience route:

£788 + VAT for ICAEW members
£985 + VAT for non members

There is no charge for applying for the Corporate Finance qualification via study route.

Job opportunities/job titles

As one of the most sought-after financial credentials, CFA can help acquire advanced knowledge, skills and capabilities in areas including equity research and financial analysis with promising career prospects. This would be of immense help to professionals willing to explore work opportunities in the global industry.

Some of the relevant job roles include:

Investment BankersPortfolio ManagersEquity Research Analysts

It is an advanced level designation in corporate finance which opens up a plethora of career opportunities for professionals by recognizing their knowledge, skills and expertise in this specialized domain. At highest levels, corporate finance is a lucrative career which can only be pursued by those demonstrating a high level of efficiency and expertise at their command. CFQ helps demonstrate those abilities to the world and makes them part of an elite community of corporate professionals.

Some of the relevant job roles for professionals with Corporate Finance Qualification are:

Treasury ManagementChief Financial Officer (CFO)

What is CFA?

This is a designation in a class of its own, awarded by CFA Institute, USA, one of the most reputed organizations dedicated to knowledge dissemination in the field of financial analysis and promotion of global professional and ethical standards in the field. CFA is pursued by finance professionals aiming to specialize in portfolio management, financial advisory and financial modeling among other areas of professional interest.

As one of the toughest financial credentials, it has one of the lowest passing rates, which clearly shows the kind of dedicated effort required to earn the credentials.

There are two routes available for acquiring this prized designation, namely study route and experience route. Essentially, CFQ is an experience-oriented qualification which requires a certain level of experience and expertise to be able to earn the designation, in which case one need not sit for any exam.

However, in absence of requisite amount of experience one can opt for study route as well. Those who opt for study route must have completed Diploma in Corporate Finance to be eligible to apply for CFQ.

CFA vs CFQ Exam Requirements

CFA exam:

To qualify for CFA, a candidate should have a Bachelor’s Degree (or they should be in final year of Bachelor’s Degree) or 4 years of professional work experience or 4 years of higher education and professional work experience taken together.

CFQ exam:

To qualify for CFQ through study route, 3 programmes are available depending on the level of experience of any candidate.

Entry-level candidates can opt for Certificate in Corporate Finance with no entry requirements to start their journey to CFQ.

Those who have completed Certificate in Corporate Finance or ICAEW Chartered Accountants can enroll for Diploma in Corporate Finance. To be eligible to apply for CFQ, candidates who have chosen study route must have completed the Diploma in Corporate Finance and currently working in a relevant position.

They should also be able to demonstrate 3 years of corporate finance experience with a minimum of three corporate finance transactions.

Alternatively, candidates applying for Corporate Finance Qualification (CFQ) directly via experience route should have a minimum of 5 years of professional experience in a corporate finance position or relevant role with at least 6 demonstrable transactions where they were in a lead advisory role.

They would also need to provide three peer references to validate their experience and expertise.

Why pursue CFA?

It is a complex and advanced multi-tier financial certification program designed to help finance professionals acquire expertise in specialized knowledge areas including asset management, financial analysis, financial modeling, portfolio management and other research-oriented areas in finance.

Even non-finance professionals stand to gain substantially by completing one or more levels of CFA whereas experienced financial professionals would be able to further their career prospects a great deal by earning CFA Charter.

This not only enhances their value in the eyes of prospective employers but also expands their area of expertise in finance along with inspiring confidence in their professional capabilities.

Why Pursue CFQ?

Earning this specialist designation brings the highest level of validation for corporate financiers, thus effectively recognizing them as leading experts in the complex field of corporate finance with the desired level of experience and expertise.

This is primarily an experience-oriented designation, which is all the more reason for qualified and experienced corporate finance professionals to apply for CFQ, who become eligible to use CF designatory letters on earning the designation.

Naturally, this helps further their career prospects substantially and it would become that much easier to inspire trust in some of the leading global employers with this highly acclaimed designation to their credit.

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Conclusion

CFA and CFQ represent two highly acknowledged credentials in finance but by no means can they be considered to be in the same category. CFA is a designation distinguished by its scope in terms of the nature of professional capabilities it might help acquire. It is definitely not a specialized designation in itself but can help experienced professionals gain necessary expertise in several specialized areas of finance including equity research, financial analysis and portfolio management. On the other hand, CFQ as a designation is limited in its scope to corporate finance and more of an experience-oriented designation which does not require one to sit for any exams to earn the Corporate Finance Qualification. Those looking to specialize in corporate finance only, need apply for Corporate Finance Qualification. CFA offers a wider scope in terms of specialization but with little to no direct relevance in the field of corporate finance.

Best Resource. Best comparisons between CFA and CFQ. Well explained. Is there any Training course on CFA level 1? Please provide me some detail from where and how will I get to learn this training so that I can expand my knowledge and skills.

Thank you so much Trevor. Yes I do have training course on CFA level 1 with detail and study material which offers curriculum and examination program designed to expand your working knowledge and practical skills related to investment decision making. For more details regarding this course you can go to this CFA Level 1 Course